These stocks could return 14%-41% as Dalal-Street rally strengthens

Brokerage: Credit Suisse

Target Price: Rs 720

CMP: Rs 593.3

Potential Upside: 21.3%

The brokerage has cut its target price on the stock to Rs 720 from Rs 790, while maintaining an outperform rating. The brokerage had cut its earnings per share estimates from FY23 to FY25 by 4-9% on concerns over lower operating profit margin and slower rampup in generic injectable business. Credit Suisse said the company’s global generic injectable sales guidance would be difficult to achieve.

Brokerage: CLSA

Target Price: Rs 850

CMP: Rs 688.6

Potential Upside: 23.4%

CLSA has raised its target price on the stock to Rs 850 from Rs 805 and maintained a buy rating. The brokerage said it’s bullish on the property developer because of its focus on the Bangalore realty market, where housing demand outlook remains strong. CLSA said Sobha generated free cash flows for the seventh straight quarter in April-June, resulting in its debt levels falling.

Brokerage: Bank of America

Target Price: Rs 945

CMP: Rs 682.1

Potential Upside: 38.6%

Bank of America said the stock could be re-rated if the insurance giant continued to deliver on growth and margins. The brokerage said LIC is trading at a sharp discount of 70% on the basis of Price to Enterprise Value compared to other domestic listed peers. It said LIC remains focused on ramping up its non-par business which should help it balance its product basket and improve overall margins

Brokerage: Morgan Stanley

Target Price: Rs 3,015

CMP: Rs 2,632.6

Potential Upside: 14.6%

Morgan Stanley said Reliance’s annual report in FY22 focused on energy transition and sustainability. “Investors always look at balance sheet health in depth, but RIL’s new energy plans also stood out this year in the annual report,” the brokerage said, while assigning an overweight rating on the stock.

Zee Entertainment
Brokerage: Ambit Capital

Target Price: Rs 340

CMP: Rs 241.8

Potential Upside: 40.5%

“We expect the company to capitalise on its market leadership with increased investments leveraging on Sony’s global OTT content expertise and ZEEL’s dominant panIndia TV presence,” said Ambit maintaining a buy rating. The brokerage said Zee’s valuations based on Price to Earnings (PE) ratio are ‘undemanding’ at 12 times FY24 estimated earnings. Zee could deliver RoE of 12%.